Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio data)
The table below sets forth the calculation of Ratios of Earnings to Fixed Charges for the periods indicated.
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | TGE (1) |
| | Nine Months Ended September 30, 2018 | | Year Ended December 31, |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | (in thousands) |
| Earnings from continuing operations before fixed charges: | | | | | | | | | | | |
| Pre-tax income from continuing operations before earnings from unconsolidated affiliates | $ | 155,367 |
| | $ | 195,333 |
| | $ | 213,249 |
| | $ | 190,312 |
| | $ | 64,169 |
| | $ | 12,971 |
|
| Fixed charges | 98,595 |
| | 93,596 |
| | 56,218 |
| | 28,254 |
| | 11,626 |
| | 13,360 |
|
| Amortization of capitalized interest | 89 |
| | 80 |
| | 65 |
| | 66 |
| | 35 |
| | — |
|
| Distributed earnings from unconsolidated affiliates | 222,082 |
| | 237,192 |
| | 54,449 |
| | 3,096 |
| | 1,280 |
| | — |
|
| less: Capitalized interest | (2,023 | ) | | (964 | ) | | (471 | ) | | (811 | ) | | (1,025 | ) | | (242 | ) |
| Earnings from continuing operations before fixed charges | $ | 474,110 |
| | $ | 525,237 |
| | $ | 323,510 |
| | $ | 220,917 |
| | $ | 76,085 |
| | $ | 26,089 |
|
| Fixed charges: | | | | | | | | | | | |
| Interest expense, net of capitalized interest | 92,557 |
| | 84,500 |
| | 41,668 |
| | 16,824 |
| | 7,648 |
| | 11,264 |
|
| Capitalized interest | 2,023 |
| | 964 |
| | 471 |
| | 811 |
| | 1,025 |
| | 242 |
|
| Estimate of interest within rental expense (33.3%) | 245 |
| | 3,148 |
| | 10,032 |
| | 8,615 |
| | 1,574 |
| | 109 |
|
| Amortization of debt costs | 3,770 |
| | 4,984 |
| | 4,047 |
| | 2,004 |
| | 1,379 |
| | 1,745 |
|
| Total fixed charges | $ | 98,595 |
| | $ | 93,596 |
| | $ | 56,218 |
| | $ | 28,254 |
| | $ | 11,626 |
| | $ | 13,360 |
|
Ratio of earnings to fixed charges (2) | 4.81 |
| | 5.61 |
| | 5.75 |
| | 7.82 |
| | 6.54 |
| | 1.95 |
|
| |
(1) | TGE, through its interest in TEP, closed the acquisitions of Terminals and NatGas effective January 1, 2017. As these acquisitions were considered transactions between entities under common control, and changes in reporting entity, financial information presented prior to January 1, 2017 has been recast to include Terminals and NatGas. |
| |
(2) | For purposes of determining the ratio of earnings to fixed charges, earnings are defined as pre-tax income or loss from continuing operations before earnings from unconsolidated affiliates, plus fixed charges, plus distributed earnings from unconsolidated affiliates, less capitalized interest. Fixed charges consist of interest expense, capitalized interest, amortization of deferred loan costs, and an estimate of the interest within rental expense. |
